Latest Stories

IRS Announces Competency Testing for Registered Tax Return Preparers

As
part of its ongoing initiative to regulate previously unenrolled tax
return preparers, the IRS announced on Tuesday that competency
testing for registered tax return preparers will start next week (IR-2011-111).

The
IRS announced that the fee for taking the competency test will be
$116 ($27 of which is the IRS user fee). The test will be a timed,
2.5-hour exam. It will cover the 2010 Form 1040 and its related
schedules. The test will consist of 120 multiple-choice and
true/false questions. Test takers will not be allowed to bring in
any materials but will have access to Form 1040, Form 1040
instructions, and Publication 17, Your Federal Income
Tax.

There
is no limit on the number of times the test can be taken. Preparers
who currently have provisional preparer tax identification numbers
(PTINs) will have until Dec. 31, 2013, to pass the test.

The test is available in English only
at this time and will be given at Prometric Inc. test centers.

The
IRS warns that initial test takers will not receive their test
scores for two to six weeks to allow the IRS to validate the exam
and determine the pass/fail cutoff.

Individuals
who are CPAs, attorneys or enrolled agents are not required to take
the competency test because they already meet more stringent
requirements to obtain their professional credentials. Nonsigning
preparers who are supervised by a CPA, attorney or enrolled agent
and who work at a firm owned at least 80% by CPAs, attorneys or
enrolled agents are also exempted from the testing requirement.
Preparers who do not prepare, or assist
in the preparation of, all or substantially all of any Form 1040
series return are also exempt from the testing requirement.

When professionals prepare written material for readers inside their organization or outside, they should make sure that no errors distract from the message they need to convey. Take this short quiz for practice in subject-verb agreement.